Monday, October 31, 2011

Tim Wood

I would like to introduce Tim Wood. Mr. Wood is owner and operator of He conducts market analysis using Dow Theory and cycles. Tim has an excellent track record with calling major tops, most notably 2000 and 2007. He was warning people in 2006/2007 that this was not a new secular Bull Market and the 4-year cycle (a common cycle found in the stock market) was being stretched. This proved to be correct as the market had its most devastating decline since the 1929-1932 Collapse. Recently, a "Dow Theory Sell Signal" was triggered but Tim was warning not to be fooled as not all Dow Theory Signals are the beginning of a major move in equity prices. He has identified DNA markers that have been seen at every major top since 1896, which did not occur in conjunction with the May 2 top. I would say Tim Wood has been proven correct once again in recent weeks, as the market has has had quite rally. It is this next top that Mr. Wood thinks will be the real deal. I agree. Whether or not the market makes it back to 1370 on the S&P 500 is immaterial. The bottom line is that there is a major top coming in the market, that will serve to fool both Bulls and Bears. The Bulls will be claiming victory if the market rallies much further while the Bears will have given up. This is what the market does. It fools the greatest number of participants possible. I agree with Mr. Wood that it will be this next top in the market that will mark THE top of the entire bear market rally from March 2009. When the bear market really gets underway I also think it will make 2008 look like a sunday school picnic. Tim Wood was warning in 2007, and he is warning again. So am I. The return of the bear market is out there, and its not going to be pretty.

Tim Wood's website:

Wednesday, October 26, 2011

Douglass Lodmell Interviews Robert Prechter

I would like to introduce Douglass Lodmell. Mr. Lodmell is an Asset Protection Attorney based out of Florida. His clientele include high net worth individuals who wish to protect their assets in the case of a lawsuit. However, with the precarious times we find ourselves in, Douglass Lodmell is worried not only about losing one's assets in a lawsuit, he is worried about those assets losing value. Accordingly, his number one goal is safety for his clients. Robert Prechter is the President and CEO of Elliott Wave International, a market forecasting firm based out of Gainesville, GA. Similar to Douglass Lodmell, Robert Prechter is advocating nothing but the safest instruments possible at this moment in time. Below is an interview that Douglass Lodmell recently did with Robert Prechter. It offers some very insightful information that one surely won't find in the mainstream media. For best viewing quality, scroll down to the lower right hand corner of the video and select "watch on youtube" and then select 720p and full screen.

Thursday, October 13, 2011

Capital Preservation

As I have stressed for some time on this blog Capital Preservation in this environment is key. I wanted to post tonight because this is one of the last chances people are going to have to preserve capital. People should be using the market rally now to raise cash. Do NOT listen to these inflation biased analysts who are saying hyperinflation is coming because Ben Bernanke will just start up the printing press when a crisis hits. Inflationists do NOT understand the nature of our money. The reality is that the biggest margin call in history is about to beset us...and one of the only things that will be going up in value is what has been inflated into oblivion for the past 100 years: The U.S. Dollar. I am extremely bullish on the U.S. Dollar as I have illustrated before and if it has not made its bottom already it is close. The reason for the coming U.S. Dollar Bull Market is a shortage of Dollars, the opposite of what most think. Most people think there is a shortage of commodities and an overabundance of U.S. Dollars, when in fact it is the exact opposite. The reality is that there is virtually NO money in the system....just promises to pay money, courtesy of the banks. The private banking cartel is in complete control of our money supply and all but one ten-thousandth (that's right, 1/10,000) of our money is debt. That little bit of money that is actual money consists of coins minted by the U.S. Treasury, as debt-free government issued money. All other money in the system is created as a LOAN; an interest-bearing debt...for which the interest cannot be paid. This will result in a credit implosion the likes of which we have never seen. This debt contraction creates an increased demand for dollars to satisfy debts, all the while the supply of dollars is diminishing due to contracting credit...this all has VERY Bullish implications for the U.S. Dollar...and very BEARISH implications for all dollar denominated assets....including Gold and Silver. In Elliott Wave terms, the world currencies are putting in supercycle tops...while the U.S. Dollar is putting in a supercycle bottom. From a cyclical standpoint, there are long-term cycles that are reversing now or in the near future...get ready for fireworks. The way to do that is to first get your money out of the big banks...they will fail in this next phase of the global credit crisis. This is already happening in Europe and will make its way around the world until there is virtually no credit left in the system...that is a long way down. The main point I want to stress, however, is that there is no reason anybody should be hurt by this credit implosion. Those who keep their wealth safe in the safest possible cash equivalents in the safest possible institutions and with the safest governments will come out the other end with all their wealth intact. Please read Bob Prechter's 2002 Book, "Conquer the Crash: you can survive and prosper in a deflationary depression" and see the second half for how to keep your money safe. A safe alternative is opening an account with and buying short-term only t-bills directly from the treasury. Time is running out and it appears as though the music is about to stop in this game of musical chairs....and as usual the most underprivileged will get hurt the most. But as we are seeing with the "Occupy Wall Street" rallies, people are catching on, and they are NOT happy campers. Social mood is worsening and will get much worse before the final bottom...which is why it is important to stay ahead of the curve and prepare for the collapse before it happens.

Friday, October 7, 2011

State Of The Markets

This market has had quite a decline since the May 2 high- 21.58%. That was enough to get CNBC to call it a "bear market"- as they define a bear market as any decline over 20%. So what happened? As usual when CNBC makes a call the market does the opposite. They weren't talking about a "bear market" with the SPX at 1370 in May. They were talking about the "good news" that Osama Bin Laden had been captured. Now they are negative because the market declined 20%, so the market did what it usually does when CNBC gets bearish: Reverse hard to the upside. The market formed an Ending Diagonal into the SPX 1074.77 low and staged a major reversal to the upside- as ending diagonals are supposed to, with a "throw-over" of the lower trendline, as illustrated below.

Now that the market has staged a major rally, the question is, what's next? I have plotted some Fibonacci resistance levels that should provide resistance. If this rally is corrective in nature, then it is most likely wave 2 up of the next major leg of this Bear Market. However, if the market starts impulsing to the upside. Then this market is set to take out the 1370 highs of May 2011. As I have emphasized before, however, it doesn't matter so much whether the rally is over or not. It matter that people get positioned for the long run trend of this market, which is DOWN. That means finding the safest possible cash equivalents and staying OUT of ALL traditional investments- Yes that includes Gold and Silver...This Bear Market could very well trump the 1929-1932 collapse...because the situation is much bigger this time....not to mention the fraud is on a MUCH more massive, scale....around the world.